Hi Stella, here's my 2 cents worth of opinion.
Firstly to those who are politely questioning this project. I'm glad it's Stella that Massey Uni has asked to be involved, as from what I've read in other threads she probably knows more than nearly anyone else on this forum when it comes to native fish; or if there is someone who knows more they don't provide as much helpful advice. That she has been given this chance to help add to the knowledge of this threatened fish means that I'm not the only one with confidence in her ability to breed them. Who knows in years to come we might all be breeding them.
From what I've read peat is usually used in a filter bag to alter the water chemistry, or its used under a layer of gravel. I'm not sure that it would work as a plain substrate as there is usually a lot of light leafy particles that are likely to float especially since it is usually dried before selling to the horticulture industry. The amount you'd use for a substrate could also make the water too acidic. Knowing what it's like to work with it in the garden on a wet UK winter's day you might also run the risk of anerobic areas forming. I suspect that you could get a get a sludgely mess. Trying a practical experiment may be the only way you'll find out.
Perhaps some mud from there natural habitat would be a good idea as tHEcONCH suggests but I wouldn't sterilise it as it is likely to have a lot of microscopic beneficial critters. The trick would be in collecting it without mixing it up to much.
I'm curious to know what kind of flow you'll have in the tank. And please let us know how it all goes, with photos too.
The views in this post are opinion only and should not be regarded as coming from somone who actually knows anything